NSCB - Second Quarter 2007 GNP

Second Quarter 2007
Gross National Product &
Gross Domestic Product by Industrial Origin

Industry keeps the economy vibrant

Industry, which accounted for 33.6 percent of GDP, recorded a hefty 8.0 percent growth from 4.4 percent last year, and contributed a significant 2.7 percentage points to total GDP growth. Biggest contributors to growth were Construction, Manufacturing, and Mining & Quarrying.

M & Q on the upsurge

From a modest 3.3 percent growth last year, Mining and Quarrying shoot up by 33.3 percent mainly due to Other Non-Metallic Mining, which soared by 60.5 percent from a 15.9 percent growth the previous year due to increased production of coal. Shipments of coal were made to China and India during the period as major key player ventured into export market. Strong performances were likewise exhibited by the following: Crude Oil, Natural Gas and Condensate rebounded with a 23.7 percent expansion from an 11.1 percent contraction with the increased production/generation of natural gas as demand by the power generation sector grew; Nickel Mining, which grew by 99.2 percent albeit slower than last year’s on account of mine operation expansions and high demand for nickel by stainless steel making industry; Other Metallic Mining, which escalated by 286.7 percent with the increased production of its major key players; Stone Quarrying, Clay & Sandpits, and Copper Mining registered increments of 11.4 percent and 28.4 percent, respectively, after suffering contractions the previous year.

Growth of M & Q, on the other hand, was tempered by weak performances of Gold Mining and Chromium Mining. Gold Mining declined further by 11.3 percent with the decrease in gold purchases by BSP. Lower market demand dampened Chromium Mining, which dwindled by 27.1 percent after recording a 31.4 percent gain the previous year.

Manufacturing posts modest gains

Manufacturing continued its upward trend but at a slightly slower pace of 3.7 percent from its year ago growth of 4.2 percent.

Food Manufactures, the leading contributor to growth, grew twice faster at 5.6 percent compared to its previous year’s 2.5 percent. This was followed by Beverage Industries, which recovered from a negative 9.0 percent growth to a sizeable 17.8 percent expansion this year; Non-metallic Mineral Products, up by a faster rate of 20.5 percent from its year ago growth of 9.7 percent; Metal Industries, up by 11.2 percent from 1.4 percent; Miscellaneous Manufactures, growing a bit slower at 8.9 percent from 15.7 percent; Footwear Wearing Apparel, rebounding with a 6.7 percent expansion from a 5.9 percent contraction; Furniture and Fixtures, which rose by 12.5 percent from 33.1 percent. Production gains were likewise registered in Chemical and Chemical Products, Transport Equipment, Wood and Cork Products, Publishing and Printing, Rubber Products, Paper and Paper Products, and Textile Manufactures.

On the other hand, the following contributed to the slowdown of the sector’s growth during the period: Electrical Machinery, declining further by 5.7 percent from negative 1.1 percent last year; Basic Metal Industries, dropping again by 4.2 percent after a remarkable 27.4 percent recovery last year; Machinery except Electrical, which has been on a decline during the same period for the last two years, contracted by 7.9 percent; Tobacco Manufactures, went down further by 13.4 percent after a substantial 26.9 percent loss in 2006; Products of Petroleum and Coal, which failed to maintain the double-digit positive growths experienced in the second quarter of the last two years and recorded a minimal 0.1 percent loss this year; and Leather and Leather Products, dropping considerably by 17.5 percent and failing to sustain the recovery achieved last year.

Government spending boosts Construction

Construction grew sharply by 21.0 percent from only 4.0 percent last year on account of the expansion in Public Construction by 39.6 percent, which is more than three times its year ago rate of 11.8 percent. The remarkable growth was spurred by government’s improved investments in infrastructure. On the other hand, Private Construction bounced back, expanding by 2.5 percent after a 4.0 percent dip in 2006.

EGW level off

Electricity, Gas and Water tapered off after five consecutive quarters of accelerated growths. From a 7.4 percent expansion last year, it was able to sustain its upward trend but at a slightly slower pace of 5.8 percent. The overall performance of EGW was largely attributed to Electricity, which accounted for 93.6 percent of EGW. The 5.7 percent growth of Electricity, albeit slower than last year, was due to stronger consumption of both commercial and residential segments. Commercial consumption was bolstered with the rise in BPOs and shopping malls. Water, on the other hand, maintained an almost steady growth at 7.3 percent with the continued implementation of aggressive expansion programs allowing new household connections. Effective management of water supply coupled with massive pipe replacement projects significantly reduced systems losses, or non-revenue water (NRW).

GROSS VALUE ADDED in INDUSTRY
2nd Quarter 2006 and 2nd Quarter 2007
IN MILLION PESOS

At Constant 1985 Prices

INDUSTRY	Q2 2006	Q2 2007	Growth Rate (%)
INDUSTRY SECTOR	104,788	113,211	8.0
a. Mining & Quarrying	6,170	8,226	33.3
b. Manufacturing	73,643	76,392	3.7
c. Construction	14,220	17,213	21.0
d. Elect,Gas and Water	10,754	11,380	5.8

At Current Prices

INDUSTRY	Q2 2006	Q2 2007	Growth Rate (%)
INDUSTRY SECTOR	456,177	508,857	11.5
a. Mining & Quarrying	21,431	33,673	57.1
b. Manufacturing	308,494	326,868	6.0
c. Construction	65,587	82,294	25.5
d. Elect,Gas and Water	60,664	66,022	8.8

GROSS VALUE ADDED in INDUSTRY
2005 and 2006
IN MILLION PESOS

INDUSTRY	AT CURRENT PRICES			AT CONSTANT PRICES
INDUSTRY	2005	2006	Growth Rate (%)	2005	2006	Growth Rate (%)
INDUSTRY SECTOR	1,735,148	1,907,980	10.0	396,882	414,931	4.5
a. Mining & Quarrying	63,639	75,557	18.7	20,032	18,813	-6.1
b. Manufacturing	1,264,651	1,381,171	9.2	293,334	306,837	4.6
c. Construction	210,191	235,189	11.9	45,852	49,213	7.3
d. Elect,Gas and Water	196,668	216,062	9.9	37,663	40,068	6.4

Source: National Statistical Coordination Board (NSCB)

Posted August 30, 2007.


E-mail the webmaster	Terms of Use	Home • Top of Page
	1997-2008, National Statistical Coordination Board Makati City, Philippines